Home Loans – Other Alternatives In Australia

by Jane Watson on February 27, 2012

Buying your own home provides your loved ones a long-term investment and also the protection of staying in one location. Financial institutions in Australia provide a selection of home loans to individuals with unique situations to help make that goal possible. There is lots to consider, mind you, before you make that choice.

A Standard Variable Home Loan is a preferred choice around Australia as the interest rate isn’t locked and it incorporates extra home loan features. A Mix or Split Home Loan gives security from future rate increases. An Introductory or Honeymoon Rate Home Loan provides low interest for an initial period.

The probability of eventually owning a place isn’t weakened by the fact that you’re self employed. Banks as well as other institutions offer you alternatives. Offering two years of tax returns is commonly a requirement if you wish to be eligible for a loan. If for some reason your tax returns aren’t up-to-date, then you can be eligible for a specific type of loan.

Low Documentation (Low Doc) Home Loan

A Low Documentation loan doesn’t require that you furnish tax returns or financial statements. Nevertheless, most banks do require the past 1 year of your Business Activity Statements (BAS) and latest account statements on any financial debt, which are not being refinanced with the Low Documentation loan. Since the loan doesn’t require full documents, it may need a larger deposit.

First Home Owner Grant (FHOG)

This is not a home loan and does not cover the entire property cost, but every bit helps with regards to buying your home. With the First Home Owner Grant System, you could be entitled to a one-off grant up to $7,000 and be stamp duty exempt if the home you are acquiring is under the value of $600,000.

It is confusing and often difficult to get home loans. Australia makes it attainable and easy with handy loan programs and government grants like the FHOG. So inquire with a home finance loan expert now about turning your dream home into a real investment.

Discover more about home loans.

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